WorldTax Compareโ† All Comparisons

Andorra vs Italy
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra
vs
๐Ÿ‡ฎ๐Ÿ‡น Italy
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“10%
10% top; EU alignment reforms ongoing
No change
23โ€“43%
3-bracket IRPEF reform targeting completion
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4.5%
4.5% IGI โ€” lowest in Europe
No change
4โ€“22%
Digital economy VAT rules tightening
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% IS; EU Association Agreement compliance
No change
24%
Investment incentive rate (20%) extended
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT โ€” key differentiator
No change
26%
Flat 26% maintained
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
CASS stable; healthcare system well-funded
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra โ€” Parish Taxes & Local Levies

Andorra's 7 parishes (parrรฒquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Regional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%โ€“3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Andorra vs Italy: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy has a higher top income tax rate (0โ€“10% vs 23โ€“43%). ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Italy has a higher consumption tax (4.5% vs 4โ€“22%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra offers a lower corporate rate (10% vs 24%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra taxes investment gains at a lower rate (0% vs 26%), benefiting investors.

Related Comparisons

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡ฑ AlbaniaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡ด AngolaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡ท ArgentinaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡ฒ ArmeniaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡บ AustraliaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡น AustriaTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ฆ๐Ÿ‡ฟ AzerbaijanTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ง๐Ÿ‡ธ BahamasTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ง๐Ÿ‡ญ BahrainTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ง๐Ÿ‡ฉ BangladeshTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ง๐Ÿ‡ง BarbadosTax comparison๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra vs ๐Ÿ‡ง๐Ÿ‡พ BelarusTax comparison